Hallador Energy Company Reports Second Quarter 2025 Financial and Operating Results
- Q2 Total Revenue up 10% YoY to $102.9 Million -- Q2 Net Income Increases to $8.2 Million or $0.19 Earnings per Share, - Q2 Operating Cash Flow of $11.4 Million -- Q2 Adjusted EBITDA increases to $3.4 Million -
TERRE HAUTE, Ind., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ:HNRG) ("Hallador" or the "Company") today reported its financial results for the second quarter ended June 30, 2025.
"We delivered a strong second quarter highlighted by gains across the P&L, including increased revenue, net income and adjusted EBITDA, along with another period of positive cash flow from operations," said Brent Bilsland, President and Chief Executive Officer. "Our performance reflects the operational resilience of our platform, particularly as we navigated seasonal spring softness in the energy market and a scheduled outage at one of our generating units. The strength of our remaining unit and higher-than-expected market pricing in late June helped offset those headwinds, while our coal operations benefited from improved cost efficiency and stronger recovery rates. As a result of these operational enhancements and our planned outage at Merom, inventory levels rose in the quarter, positioning us for an active second half as both units return to full dispatch and coal customer shipments accelerate."
Bilsland continued, "We're also seeing increased momentum in our commercial strategy to secure a long-term power purchase agreement (PPA). Since concluding exclusive discussions with a major data center developer in May, we've engaged with a broader slate of potential partners, including utilities whose proposals offer compelling scale and execution benefits. The current market backdrop, characterized by ramping demand for accredited capacity and resilient baseload power, presents a significantly more attractive landscape than when we initiated our RFP process last year. We remain optimistic that these conversations will culminate in a long-term agreement that enhances value for our shareholders."
"Looking ahead, we remain focused on unlocking the full value of our dispatchable generation assets while continuing to evaluate strategic acquisitions and enhancements. The momentum we're seeing across federal and state policy, combined with growing interest from potential partners for a long-term PPA, reinforces our confidence in the path ahead. We believe Hallador is uniquely positioned to capitalize on the secular trends that are reshaping the energy sector."
Second Quarter 2025 Highlights
Despite our planned maintenance outage and typical seasonal softness in the energy market early in the quarter, the Company generated growth on both the top and bottom line.
Total revenue increased 10% year-over-year to $102.9 million, driven by a strong increase in coal sales to $38.1 million.
Net income and Adjusted EBITDA increased year-over-year to $8.2 million and $3.4 million, respectively.
The Company generated $11.4 million in operating cash flow during the second quarter, which was used to partially fund capex.
Total bank debt was $45.0 million at June 30, 2025, compared to $23.0 million at March 31, 2025, and $44.0 million at December 31, 2024. The expected increase from March 31, 2025 was driven by a higher revolver balance related to the planned maintenance outage.
In June 2025, Hallador amended its credit agreement to enhance operating flexibility for the remainder of the year. The amendment redefined covenants, deferred certain covenant requirements until the third quarter and moved the scheduled October 2025 debt repayment to January 2026. During the second quarter, Hallador entered into a $35.0 million prepaid power sales agreement and at the Company's request it was permitted to deposit $19.0 million from that transaction into a money market account as a compensating balance to the Term Loan in lieu of immediately paying it off. These changes support improved liquidity management and provide optionality as the Company evaluates refinancing alternatives for the current credit facility prior to their maturities over the course of 2026.
Total liquidity was $42.0 million at June 30, 2025, compared to $69.0 million at March 31, 2025, and $37.8 million at December 31, 2024.
Capital expenditures in the second quarter were $13.1 million compared to $13.2 million in the year-ago period.
Hallador continues to focus on forward sales to secure its energy position.
At quarter-end, Hallador had total forward energy, capacity and coal sales to 3rd party customers of $1.0 billion through 2029.
Financial Summary($ in Millions and Unaudited)
Q2 2025
Q2 2024
Electric Sales
$
60.0
$
60.0
Coal Sales- 3rdParty
$
38.1
$
32.8
Other Revenue
$
4.8
$
1.0
Total Sales and Operating Revenue
$
102.9
$
93.8
Net Income (Loss)
$
8.2
$
(10.2
)
Operating Cash Flow
$
11.4
$
23.5
Adjusted EBITDA*
$
3.4
$
(5.8
)
* Non-GAAP financial measure, defined as EBITDA plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus other reclassifications such as special non-recurring project expenses.
Adjusted EBITDA should not be considered an alternative to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies. Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our liquidity.
Reconciliation of GAAP "Income (Loss) before Income Taxes" to non-GAAP "Adjusted EBITDA"(In $ Thousands and Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
NET INCOME (LOSS)
$
8,248
$
(10,204
)
$
18,227
$
(11,900
)
Interest expense
3,819
3,735
7,542
7,672
Income tax expense (benefit)
—
(3,011
)
—
(3,621
)
Depreciation, depletion and amortization
5,542
13,649
20,519
29,092
EBITDA
17,609
4,169
46,288
21,243
Other operating revenue
—
6
—
13
Stock-based compensation
475
1,581
1,559
2,247
Asset retirement obligations accretion
437
399
864
798
Other amortization (1)
(13,032
)
(13,923
)
(24,366
)
(26,143
)
(Gain) loss on disposal or abandonment of assets, net
(55
)
(222
)
(76
)
(246
)
Loss on extinguishment of debt
—
1,937
—
2,790
Equity method (investment) loss
(197
)
257
39
506
Other reclassifications
(1,839
)
—
(1,600
)
—
Adjusted EBITDA
$
3,398
$
(5,796
)
$
22,708
$
1,208
(1) Other amortization relates to the non-cash amortization of the Hoosier PPA entered into in connection with the acquisition of the Merom Power Plant in 2022.
Solid Forward Sales Position - Segment Basis, Before Intercompany Eliminations (unaudited):
2025
2026
2027
2028
2029
Total
Power
Energy
Contracted MWh (in millions)
2.53
4.00
1.78
1.09
0.27
9.67
Average contracted price per MWh
$
37.75
$
43.05
$
54.65
$
52.98
$
51.00
Contracted revenue (in millions)
$
95.51
$
172.22
$
97.28
$
57.75
$
13.77
$
436.53
Capacity
Average daily contracted capacity MW
716
733
623
454
100
Average contracted capacity price per MWd
$
224
$
230
$
226
$
225
$
230
Contracted capacity revenue (in millions)
$
29.46
$
61.54
$
51.40
$
37.33
$
3.47
$
183.20
Total Energy & Capacity Revenue
Contracted Power revenue (in millions)
$
124.97
$
233.76
$
148.68
$
95.08
$
17.24
$
619.73
Coal
Priced tons - 3rd party (in millions)
1.42
2.30
2.50
0.50
—
6.72
Avg price per ton - 3rd party
$
50.96
$
55.58
$
56.74
$
59.00
$
—
Contracted coal revenue - 3rd party (in millions)
$
72.36
$
127.83
$
141.85
$
29.50
$
—
$
371.54
TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED
$
197.33
$
361.59
$
290.53
$
124.58
$
17.24
$
991.27
Priced tons - Intercompany (in millions)
1.67
2.30
2.30
2.30
—
8.57
Avg price per ton - Intercompany
$
51.00
